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'Since then, we have reset the business and returned it to quarter-on-quarter customer growth.

'By signing heads of terms with Infracapital we are making good progress towards putting TalkTalk at the heart of Britain's fibre future by building a full fibre network, bringing faster, more reliable internet to millions of homes and businesses.

'Looking ahead we see real opportunity to continue growing the core business whilst also investing in full fibre. We have therefore strengthened our balance sheet and temporarily reduced our dividend to take full advantage of the opportunities available.'

The group said it was on track for 'for 'strong earnings growth' of 15 per cent for 2019 and would significantly drive down costs.

TalkTalk's proposed share placing will comprise 19.99 per cent of existing share capital, with executive chairman Sir Charles Dunstone and other top-level bosses taking up to £40million. The company's dividend is being cut by 2.5p.

During the last quarter, TalkTalk saw its customer base rise by 37,000, compared to an increase of 27,000 in the previous quarter.

Henry Croft, Research Analyst at Accendo Markets, said: 'Shares are still flirting with lows after an earlier recovery, suggesting investors warming to the idea of joining the fibre freight train.

'With that said, they remain more than 10% lower. Pragmatists would say it's never bad to see management putting their money where their mouth is.

'Cynics might question whether this is truly an innovative investment or just smoke and mirrors to disguise a company in dire financial straits, wondering if this is just money for nothing.'

In October 2016, TalkTalk was slapped with a £400,00 fine by the Information Commissioner's Office for 'security failings' that allowed a cyber attacker to access customer data 'with ease.'

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